KJ Block

RT @kjblock: No More Advance Fees on Debt Settlement? Options For DS Business Owners?: http://bit.ly/9g6DER

Would like to survey you about what you plan to do after October when debt settlement advance fees are illegal. Email me info@kjblock.com

People in the debt settlement business need options now that advance fees will be prohibited starting October 2010. You will need to adapt to the new debt negotiation business model. Learn the Five Step System to Start a Debt Negotiation Business.

See the Debt Negotiation Five Steps Guide: Download Debt Negotiation Guide

It’s a whole new world out there to make sure your company is doing everything right with your licensing of its loan officers. You got to read the state and federal definitions carefully to make sure you are in compliance.

So let’s take a look at some definitions of terms like “mortgage loan originator”:

This refers to an individual who for compensation or gain, whether through contact by telephone, by electronic means, by mail, or in person with prospective borrowers, either:
1) Takes a residential mortgage loan application or offers or negotiates terms of a residential mortgage loan.
2) Accepts or offers to accept applications for mortgage loans
3) Solicits or offers to solicit a mortgage loan
4) Negotiates the terms or conditions of a mortgage loan, or
5) Issues mortgage loan commitments or interest rate guarantee agreements to prospective borrowers.

So let’s think about the above “mortgage loan originator” definition (by the way this is North Carolina’s definition). Think about your folks who answer the phone? Do you have people taking loan applications by phone who are not licensed as loan originators?

Be wary of definitions and how they might be viewed against how your company operates. Keep a watchful eye on this issue so you’ll be in good shape when you receive notice of your next state audit examination or consumer complaint.

More to follow on this important topic in another post …